Urgent help on accounting homework please? Galaxy Company uses the periodic inve

Question

Urgent help on accounting homework please?

Galaxy Company uses the periodic inventory method and recorded the following inventory and purchase transactions for the month of August 20X4.

Determine the ending inventory balance at August 31 and the cost of goods sold for the month of August, 20X4 for Galaxy Company. Galaxy Company sold 3,100 units during August, 20X4. On August 31, a physical inventory count was conducted, and 2,500 units were on hand. Assume the company uses the first-in-first-out (FIFO) cost flow assumption.

Date Transaction Units Unit Cost Total Aug1 Beginning Inventory 3,000 Units @1.00 $3,000 Aug3 Purchases 900 Units @1.20 1,080 Aug10 Purchases 800 Units @1.40 1,120 Aug17 Purchases 600 Units @1.60 960 Aug24 Purchases 300 Units @1.80 540

Explanation / Answer

Under LIFO ,Units purchased last are sold first ,so 3100 units are sold from last purchases

Cost of Goods sold:

COGS Ending Inventory units cost units cost aug 24 300 540 - 17 600 960 - 10 800 1120 - 3 900 1080 - 1 500*1 500 2500*1 2500 Total 3100 4200 2500 2500

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